Procurement Cardprogram User's Guide

Supply Chain Services Department PPrrooccuurreemmeenntt CCaarrddPPrrooggrraamm UUsseerr’’ss GGuuiiddee Rev. 3/7/11 SUPPLY CHAIN SERVICES DEPARTMENT Procurement Card User’s Guide Spring Independent School District 16717 Ella Blvd Houston, TX 77090 Table of Contents BILLING CYCLE ............................................... 10 RECONCILIATION TOOLS ....................................... 10 INTRODUCTION TO THE PROCUREMENT CARD RECONCILIATION PROCESS (3-WAY MATCH) ............ 11 PROGRAM ...................................................... 1 Step 1: Collecting & Retaining Appropriate Supporting Documentation ....................... 11 ROLES AND RESPONSIBILITIES ......................... 2 Step 2: Completing the Transaction Log .... 11 PROGRAM ADMINISTRATOR ...................................2 Step 3: Reviewing & Approving the CAR CARDHOLDER ......................................................2 Report ........................................................ 12 SAFEGARDING YOUR CARD ..........................2 APPENDIX A – TRANSACTION LOG ........................ 14 VERIFYING AND RECONCILING APPENDIX B – P-CARD REQUEST FORM ................. 15 TRANSACTIONS ............................................2 APPENDIX C – EMPLOYEE AGREEMENT .................. 16 DEPARTMENT HEAD ..............................................3 APPENDIX D – DEPARTMENTAL GUIDELINES ........... 17 SUPERVISOR ........................................................3 Special Services Department (CBI Program) AUTHORIZED REVIEWER .................................3 ................................................................... 17 ACCOUNTS PAYABLE .............................................3 PROGRAM CONTROLS & RESTRICTIONS .......... 3 LIMITED DISTRIBUTION ..........................................3 SUPPLIER INDUSTRY CODE RESTRICTIONS & ...............3 BUDGETARY CONTROLS .........................................3 DEPARTMENTAL GUIDELINES ...................................4 THE CARD PROCESS ......................................... 4 OBTAINING A PROCUREMENT CARD ............... 5 ACTIVATING YOUR ACCOUNT ......................... 5 ACCESS TO AMERICAN EXPRESS CORPORATE ACCOUNT RECONCILIATION (CAR) .................. 5 ACCEPTABLE/NON-ACCEPTABLE PURCHASES .. 6 ACCEPTABLE PURCHASES .......................................6 NON-ACCEPTABLE PURCHASES ................................6 MAKING A PURCHASE ..................................... 6 ORDER METHOD OPTIONS ......................................6 BILLING ADDRESS CONFIRMATION .......................7 SALES TAX EXEMPTION .........................................7 NEW MERCHANTS ...............................................8 DOCUMENTING YOUR PURCHASE ................... 8 TRANSACTION LOGS ....................................... 8 RETURNS, CREDITS AND DISPUTED CHARGES . 9 LOST, STOLEN OR MISPLACED CARDS ............. 9 WHAT TO DO IF YOU TRANSFER OR TERMINATE ..................................................... 9 P-CARD PAYMENT ......................................... 10 MONTHLY TRANSACTION RECONCILIATION .. 10 Introduction to the Procurement Card Program he purpose of the Spring Independent School District Procurement Card (P- Card)Program is to establish a more efficient, cost-effective method of purchasing and paying for specific categories of expenditures, as defined T within this document. Spring ISD has partnered with American Express to implement a P-Card program (The Program) that meets the specific needs of the district and the participating departments and cardholders. The American Express P- Card is a credit card tailored specifically for authorized business use only and provides various benefits, as follows: • P-Cards simplify the procurement process for authorized transactions and provide a convenience factor to the cardholder, enabling the cardholder to make a purchase at the actual time their need arises • The P-Card transaction provides process and cycle time savings by minimizing the number of documents, requisitions, invoices, and checks processed for authorized P-Card purchases • P-Card rewards points will be consolidated at the District level. The points will be converted to cash and returned to the General Fund • Individual P-Card accounts can be programmed with pre-defined restrictions, ensuring that only transactions meeting The Program criteria are allowed. Such restrictions help ensure compliance with budgetary, departmental, and purchasing policies and procedures The Cardholder User’s Guide provides the general guidelines for using your P- Card. Please read it carefully. Your signature on the cardholder agreement shows that you understand the intent of The Program and agree to follow the established school district and departmental guidelines. 1 Roles and Responsibilities PROGRAM ADMINISTRATOR Paul Young – Program Administrator, Ph# 281-891-6471 The Program Administrator is responsible for the overall administration of the Program. This person is knowledgeable on all procedures in this User’s Guide. The Program Administrator will help with implementing P-Card changes (i.e., spending limits, account information, etc.) and will update policies and procedures as necessary to meet the changing needs of the District. All requests, problems, or questions related to the Program must go through the Program Administrator. CARDHOLDER A cardholder is the person designated by the Department Head to utilize the P- Card to purchase items within the Program’s controls and limits. Both your name and Spring Independent School District are imprinted on the front of your P-Card. You are the authorized cardholder. All purchases made with your assigned P-Card must be only yours. Failure to follow established purchasing guidelines when using the P-Card may result in disciplinary action up to and including termination. SAFEGARDING YOUR CARD As the cardholder, you are solely responsible for ensuring the security of your P-Card. The P-Card is to be kept in a safe place, preferably locked up, when not in use. You may not allow anyone else to make purchases on your P-Card. If a cardholder will be absent from the office for an extended period of time, the Department Head should request that a P-Card be issued to someone else within the department to act as back- up for the duration of the cardholder’s absence. VERIFYING AND RECONCILING TRANSACTIONS The cardholder is responsible for ensuring the validity and accuracy of the purchases made on his/her assigned P-Card. As the cardholder, you must review all activity that posts on your account and are responsible for reconciling the monthly American Express billing statement against your Tracking Log and the American Express web- based Corporate Account Reconciliation (CAR) tool. This process will ensure that the District only submits payment to American Express for valid transactions. Further instructions about the Tracking Log and the CAR reconciliation tool are described within this user guide. 2 DEPARTMENT HEAD The Department Head is the person authorized by the District to designate and approve their eligible staff to be issued a P-Card. The Department Head must also approve the monetary spending restrictions assigned to each cardholder’s P- Card and any changes (increases/decreases) to the spending limits. SUPERVISOR The cardholder’s supervisor is responsible for signing off on the monthly account reconciliation (CAR tool and Transaction Log) for each of his/her staff members. The supervisor’s approval confirms purchases were proper and necessary for the department. AUTHORIZED REVIEWER The responsibility of the Authorized Reviewer is to confirm the accuracy of the purchase records and allocation of transactions to the appropriate budget account. This role will also be responsible for the secure retention of all P-Card records for the mandatory 7-year retention period. ACCOUNTS PAYABLE The District’s Accounts Payable department is responsible for posting all monthly P-Card activity to the District’s general ledger and issuing payment to American Express for all transactions within a given billing cycle within the agreed payment terms (14 calendar days). Program Controls & Restrictions LIMITED DISTRIBUTION The P-Card has a very limited distribution within the District. Only select departments and users have been authorized to utilize the card. This maintains security and controls. SUPPLIER & INDUSTRY CODE RESTRICTIONS The Program allows for P-Card purchases to be restricted to authorized Suppliers and/or Industry Codes only. The District defines these restrictions and the Program Administrator communicates such restrictions to American Express for implementation on the cardholder accounts. BUDGETARY CONTROLS • Pre-Established Spending Limits: The P-Card program provides departments and cardholders the ability to limit spending based on pre- established departmental and district budgetary restrictions. Each cardholder’s 3 P-Card may be customized with a unique spending limit to prevent overspending. Such P-Cards may be referenced as “spend-down” accounts and the monetary balance on such cards is depleted as purchasing transactions are processed. The pre-established monetary limits are adjustable and may be increased or decreased by submitting an approved request to the Program Administrator. • Pre-Established Accounting Codes: Depending on your Departmental guidelines, your P-Card account and related purchases may default to a pre- established set of accounting codes. Pre-set Accounting codes help ensure that your purchases comply with the District’s budget

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